IGO (IGO) H2 2024 earnings summary

Executive summary

• FY24 was marked by significant market volatility, leadership renewal, portfolio shifts, and operational challenges, but also progress in safety and asset performance, with TRIFR reduced to 10.4, a 35% year-over-year reduction.

• Greenbushes delivered 1.38Mt production at AUD 330/t cost, maintaining 85% EBITDA margins despite market volatility.

• Nova and Forrestania generated AUD 331M free cash flow; Forrestania mining to cease soon, with closure and rehabilitation planned.

• Major non-cash impairments of AUD 458M were recognized against nickel and exploration assets, streamlining the portfolio.

• Corporate team and operating model reshaped, including workforce reductions and new executive appointments to prepare for the next strategic phase.

Financial highlights

• Underlying NPAT reached AUD 319M for FY24, down 79% year-over-year; statutory NPAT dropped to AUD 3M.

• Revenue declined 18% year-over-year to AUD 841M.

• Underlying EBITDA was AUD 581M, down 71% year-over-year.

• Net cash from operating activities was AUD 872M, with a year-end cash balance of AUD 468M and liquidity at AUD 1.19B.

• Final dividend of AUD 0.26/share, total AUD 0.37/share for the year, equating to AUD 280M returned to shareholders.

Outlook and guidance

• Strategy session scheduled for September 12 to detail future direction, with continued focus on battery materials (lithium, nickel, copper) and operational excellence.

• FY25 guidance: Nova nickel production 16,000–18,000t, cash cost AUD 4.80–5.80/lb; Greenbushes spodumene production 1,350–1,550kt, cash cost AUD 320–380/t.

• Exploration spend guided to AUD 50–60M in FY25, with a run rate below AUD 50M from FY26.